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Basic Question 2 of 22
Which one of the following is true?
B. Ending Inventory = Cost of Goods Sold + Purchases - Beginning Inventory
C. Ending Inventory = Beginning Inventory - Purchases + Cost of Goods Sold
A. Cost of Goods Sold = Beginning Inventory + Purchases - Ending Inventory
B. Ending Inventory = Cost of Goods Sold + Purchases - Beginning Inventory
C. Ending Inventory = Beginning Inventory - Purchases + Cost of Goods Sold
User Contributed Comments 4
| User | Comment |
|---|---|
| quincy | Begining Inventory + Purchase = COGS + Ending Inventory |
| 2014 | Or BPC (British Petroleum Corporation) B+P-C "BPC" |
| 2014 | = EI = "BPC" |
| ashish100 | Or use logic. |
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Learning Outcome Statements
describe different inventory valuation methods (cost formulas);
calculate and compare cost of sales, gross profit, and ending inventory using different inventory valuation methods and using perpetual and periodic inventory systems;
calculate and explain how inflation and deflation of inventory costs affect the financial statements and ratios of companies that use different inventory valuation methods;
CFA® 2024 Level I Curriculum, Volume 3, Module 22.